Here are simplified financial statements for Watervan Corporation: The company’s cost of capital is 8. Calculate Watervan’s economic value added…

Here are simplified financial statements for Watervan Corporation: The company’s cost of capital is 8.00%.

a. Calculate Watervan’s economic value added (EVA).

b. What is the company’s return on capital?

c. What is its return on equity? Use start-of-year rather than average equity.)

d. Is the company creating value for its shareholders? Yes No